The Philippine Stock Exchange said Tuesday it approved the P3.2-billion initial public offering of Premiere Island Power REIT Corp., a company led by the Villar family.
The PSE said in a statement PREIT planned to sell 1.4 billion shares, with additional 210 million shares in case of overallotment, at a maximum of P2 apiece.
It said the selling shareholders are Siquijor Island Power Corp. and Camotes Island Power Generation Corp., which are controlled by the Villar Group.
“REITs have become a popular asset class among investor in the last two and a half years. We welcome more listings in this space to expand the REIT options available to investors,” said PSE president and chief executive Ramon Monzon.
The local bourse said PREIT would conduct a book-building exercise to determine the final offer price for the maiden share offering.
PREIT scheduled the offering from Nov. 28 to Dec. 5. The shares will be listed on the main board of the PSE on Dec. 15.
The company engaged China Bank Capital Corp. as sole issue manager, underwriter and bookrunner and RCBC Capital Corp. as a participating underwriter.
PREIT is the power and infrastructure platform of Prime Asset Ventures Inc., the holding company of Manuel Paolo Villar, the eldest son of real estate tycoon Manuel Villar.
The company’s initial property portfolio consists of land and power plant assets utilized in the power generation projects of SIPCOR and CAMPCOR in Cebu and Siquijor, which have a combined installed capacity of 21.2 megawatts.
The selling shareholders will receive the full amount of the proceeds, which they plan to reinvest, pursuant to the revised implementing rules and regulations of Republic Act No. 9856 or the Real Estate Investment Trust Act of 2009.
PREIT sad in a prospectus it was expecting a “base case” divided payout of 6.9 percent in 2022 and 7.2 percent in 2023.
PREIT will be the second energy-related REIT in the country, next to Citicore Energy REIT Corp. of businessman Edgar Saavedra.
It will also be the Villar family’s second REIT unit to list in the local bourse, following VistaREIT Inc.’s debut on June 15, 2022.
The Villar family’s other listed firms are Vista Land & Lifescapes Inc., AllHome Corp., AllDay Marts Inc., Golden MV Holdings, Vista Land & Lifescapes Inc. and Vistamalls Inc.